Owe Taxes and Cannot Pay? Your Options
From Tax Guide.
Tax Guide · Arab, Alabama
Missed the Tax Deadline? Late Filing and Extensions
Missed the tax deadline or need more time? How a Form 4868 extension works, why it does not extend time to pay, and what to do if you filed late.
The short answer
What happens if I miss the tax deadline?
If you miss the deadline and owe tax, penalties and interest generally begin to build, and filing as soon as you can generally helps limit the late-filing penalty.
The IRS charges a penalty for filing late and a separate penalty for paying late, and the late filing one is generally larger. If you are due a refund, there is usually no penalty for filing late, though your refund can still be lost if you wait too long. The rules on time limits are covered in our guide to amending a return.
The most important step is to file, even if you cannot pay. Do not skip filing because you are afraid of the bill.
Extensions
How does a tax extension (Form 4868) work?
An extension gives you extra time to file your return, but it does not give you extra time to pay what you owe.
You request one by filing Form 4868 with the IRS by the regular deadline. It moves the filing date out by a set period, and it does not require you to give a reason. The tax you owe is still due by the original deadline, so you should estimate it and pay what you can with the extension.
Interest and late-payment penalties can apply to any tax paid after the original due date, even if you have an extension. An extension can be helpful if you are waiting on a form, for example a late document like those in our missing W-2 guide.
| Extension of time to file | Time to pay | |
|---|---|---|
| Extends filing date | Yes, by a period set by the IRS | No |
| Stops interest on unpaid tax | No | No |
| Requires a reason | No | Not applicable |
The IRS sets the dates each year.
Alabama
Do I need a separate extension for Alabama?
Alabama has its own extension rules, so do not assume a federal extension automatically covers the state return.
Depending on the situation, the state may accept your federal extension or may ask for its own request. Because the rules can change, we confirm the current Alabama requirement when we prepare your return. Read how to file taxes in Alabama for more on the state side.
Already late
What should I do if I already filed late or have not filed at all?
File as soon as you can, pay what you are able to, and respond to any letter you receive.
If you missed the deadline once, gather your documents and file now. If you have missed more than one year, see unfiled tax returns, because the IRS may already be sending notices. If a penalty was assessed and you had a good reason, ask whether relief is possible; our page on penalty relief and abatement explains what that means. We cannot promise any penalty will be removed.
If you cannot pay the balance, do not ignore it. The IRS offers options, and acting early is far better than waiting for collection notices. See what to do if you owe taxes and cannot pay.
- File the return even if you cannot pay
- Pay what you can, as early as you can
- Keep copies of anything you send or receive
- Never ignore a notice, since it has a response deadline printed on it
How we can help
Extension and late filing help in Arab
Melton Tax Services prepares individual and family returns, including late returns, and can help you decide whether an extension makes sense.
Our income tax preparation service covers extensions and returns for people who are behind. If an agency has already written to you, our tax representation service can review the notice, explain the options and respond on your behalf. Call 256-586-4635 or visit the contact page. We serve Arab and the surrounding area.
Answers
Questions about late filing and extensions
Do I have to give a reason to get an extension?
No. The IRS grants the extension of time to file when you submit Form 4868 on time. You do not explain why.
Does an extension give me more time to pay?
No. It only extends the time to file. Tax not paid by the original deadline can still accrue interest and penalties.
Is there a penalty for filing late if I am owed a refund?
Generally there is no failure-to-file penalty when no tax is owed, but you can lose the refund if you wait past the time limit. File as soon as you can.
What if I cannot pay when I file?
File anyway and pay what you can. Then look at payment options with the IRS. Do not skip filing.
Can my late filing penalty be removed?
Sometimes, if you have a reasonable cause or a clean history, but each request is reviewed by the IRS and no result is certain. We can talk through whether it makes sense to ask.
Read next
Related reading
Unfiled Tax Returns: What To Do If You Have Not Filed
From Tax Guide.
IRS Penalty Relief: First-Time Abatement Explained
From Tax Guide.
Lost, Missing or Wrong W-2? What to Do
From Tax Guide.
Income Tax Services
A service Melton Tax Services provides.
Melton Tax Services
Questions about your taxes or your business?
Our team in Arab is just a phone call away, and we are glad to talk it through with you.